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Shutterstock Reports First Quarter 2025 Financial Results

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NEW YORK, May 2, 2025 /PRNewswire/ — Shutterstock, Inc. (NYSE: SSTK) (the “Company”), a leading global creative platform offering high-quality creative content for transformative brands, digital media and marketing companies, today announced financial results for the first quarter ended March 31, 2025.

Commenting on the Company’s performance, Paul Hennessy, the Company’s Chief Executive Officer, said, “I am pleased to report that Shutterstock started the year strong, with a first quarter that achieved year over year Content revenue growth of 17%, as well as improvements across many of our key financial metrics. As we continue to generate strong free cash flow at attractive margins, we remain committed to growth in both the Content and Data, Distribution and Services businesses in 2025.”

First Quarter 2025 highlights as compared to First Quarter 2024:

Financial Highlights

Revenues were $242.6 million compared to $214.3 million.Net income was $18.7 million compared to $16.1 million.Net income per diluted common share was $0.53 compared to $0.45.Adjusted net income was $36.3 million compared to $33.1 million.Adjusted net income per diluted common share was $1.03 compared to $0.92.Adjusted EBITDA was $63.4 million compared to $56.0 million.

FIRST QUARTER RESULTS

Revenue

First quarter revenue of $242.6 million increased $28.3 million or 13% as compared to the first quarter of 2024.

Revenue from our Content product offering increased $29.1 million, or 17%, as compared to the first quarter of 2024, to $202.9 million. Content revenue represented 84% of our total revenue in the first quarter of 2025.

Revenue generated from our Data, Distribution, and Services product offering decreased $0.8 million, or 2%, as compared to the first quarter of 2024, to $39.7 million, and represented 16% of first quarter revenue in 2025. Revenue growth was unfavorably impacted by 1% due to fluctuations in foreign currencies for the three months ended March 31, 2025, compared to the same period in 2024.

Net income and net income per diluted common share

Net income in the first quarter of 2025 of $18.7 million increased $2.6 million as compared to net income of $16.1 million for the first quarter in 2024. Net income per diluted common share was $0.53, as compared to $0.45 for the same period in 2024. These increases were attributable to profitability associated with the Envato business acquired in July of 2024, offset by an increase in interest expense of $3.7 million due to increased debt which funded the purchase of Envato. The Company also incurred $11.9 million of professional fee expenses in the quarter associated with the proposed merger with Getty Images Holdings, Inc. (“Getty Images”).

Adjusted net income and adjusted net income per diluted common share

Adjusted net income in the first quarter of 2025 of $36.3 million increased $3.2 million as compared to adjusted net income of $33.1 million for the first quarter in 2024. First quarter 2025 adjusted net income was favorably impacted by profitability associated with the Envato acquisition offset by an increase in interest expense.

Adjusted net income per diluted common share was $1.03 as compared to $0.92 for the first quarter of 2024, an increase of $0.11 per diluted share.

Adjusted EBITDA

Adjusted EBITDA of $63.4 million for the first quarter of 2025 increased by $7.4 million, or 13%, as compared to the first quarter of 2024, primarily due to the contribution from Envato. Net income margin of 7.7% for the first quarter of 2025 increased by 0.2%, as compared to 7.5% in the first quarter of 2024. The adjusted EBITDA margin of 26.1% for the first quarter of 2025 was consistent with the first quarter of 2024.

FIRST QUARTER LIQUIDITY

Our cash and cash equivalents increased by $0.9 million to $112.2 million at March 31, 2025, as compared with $111.3 million as of December 31, 2024. This increase was driven by $25.2 million of net cash provided by our operating activities, partially offset by $15.8 million of net cash used in financing activities and $11.2 million of net cash used in investing activities.

Net cash provided by our operating activities was driven by our operating income and changes in the timing of cash collections from our customers and payments pertaining to operating expenses, offset by payments of year-end bonuses and commissions. In addition, cash flows for the three months ended March 31, 2025 were unfavorably impacted by $9.4 million of expenses related to the Getty Images proposed merger.

Cash used in investing activities for the three months ended March 31, 2025 consisted of $11.7 million related to capital expenditures and content acquisition, partially offset by $0.5 million related to the receipt of the Giphy Retention Compensation, as reimbursed by the Giphy seller.

Cash used in financing activities for the three months ended March 31, 2025 consisted of $11.5 million related to the payment of the quarterly cash dividend, $3.5 million paid in settlement of tax withholding obligations related to employee stock-based compensation awards, and $0.8 million used for the repayment of our credit facility.

Adjusted free cash flow was $23.4 million for the first quarter of 2025, an increase of $12.1 million from the first quarter of 2024.

QUARTERLY CASH DIVIDEND

During the three months ended March 31, 2025, the Company declared and paid a cash dividend of $0.33 per common share or $11.5 million.

On April 21, 2025, the Board of Directors declared a dividend of $0.33 per share of outstanding common stock, payable on June 19, 2025 to stockholders of record at the close of business on June 5, 2025.

KEY OPERATING METRICS

Three Months Ended March 31,

2025

2024

Subscribers (end of period)(1)

1,079,000

499,000

Subscriber revenue (in millions)(2)

$               109.9

$                   83.9

Average revenue per customer (last twelve months)(3)

$                  244

$                    418

Paid downloads (in millions)(4)

120.9

35.0

Subscribers, Subscriber Revenue and Average Revenue Per Customer from acquisitions are included in these metrics beginning twelve months after the closing of the respective business combination. Accordingly, the metrics include Subscribers, Subscriber revenue, and Average revenue per customer from Backgrid beginning February 2025. 2025 metrics include the counts and revenues from Envato.

 

(1)

Subscribers is defined as those customers who purchase one or more of our monthly recurring products for a continuous period of at least three months, measured as of the end of the reporting period.

(2)

Subscriber revenue is defined as the revenue generated from subscribers during the period.

(3)

Average revenue per customer is calculated by dividing total revenue for the last twelve-month period by customers. Customers is defined as total active, paying customers that contributed to total revenue over the last twelve-month period. 

(4)

Paid downloads is the number of downloads that our customers make in a given period of our content. Paid downloads exclude content related to our Studios business, downloads of content that are offered to customers for no charge, including our free trials and metadata delivered through our data deal offering.

NON-GAAP FINANCIAL MEASURES

To supplement Shutterstock’s consolidated financial statements presented in accordance with the accounting principles generally accepted in the United States, or GAAP, Shutterstock’s management considers certain financial measures that are not prepared in accordance with GAAP, collectively referred to as non-GAAP financial measures, including adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted net income per diluted share, revenue growth (including by distribution channel) on a constant currency basis (expressed as a percentage), billings and adjusted free cash flow.

Shutterstock defines adjusted EBITDA as net income adjusted for depreciation and amortization, non-cash equity-based compensation, Giphy Retention Compensation Expense – non-recurring, foreign currency transaction gains and losses, severance costs associated with strategic workforce optimizations, unrealized losses / gains on investments, interest income and expense, income taxes and Merger related costs; adjusted EBITDA margin as the ratio of adjusted EBITDA to revenue; adjusted net income as net income adjusted for the impact of non-cash equity-based compensation, amortization of acquisition-related intangible assets, Giphy Retention Compensation Expense – non-recurring, severance costs associated with strategic workforce optimizations (reported in Other), unrealized losses / gains on investments (reported in Other), Merger related costs and the estimated tax impact of such adjustments; adjusted net income per diluted common share as adjusted net income divided by weighted average diluted shares; revenue growth (including by product offering) on a constant currency basis (expressed as a percentage) as the increase in current period revenues over prior period revenues, utilizing fixed exchange rates for translating foreign currency revenues for all periods in the comparison; billings as revenue adjusted for the change in deferred revenue, excluding deferred revenue acquired through business combinations; and adjusted free cash flow as net cash provided by operating activities, adjusted for capital expenditures, content acquisition, cash received related to Giphy Retention Compensation in connection with the acquisition of Giphy, and cash paid for costs related to the Getty Images merger.

The expense associated with the Giphy Retention Compensation related to (i) the one-time employment inducement bonuses and (ii) the vesting of the cash value of unvested Meta equity awards held by the employees prior to closing, which are reflected in operating expenses (together, the “Giphy Retention Compensation Expense – non-recurring”), are required payments in accordance with the terms of the acquisition. Meta’s sale of Giphy was directed by the United Kingdom Competition and Markets Authority (the “CMA”) and accordingly, the terms of the acquisition were subject to CMA preapproval. Management considers the operating expense associated with these required payments to be unusual and non-recurring in nature. The Giphy Retention Compensation Expense – non-recurring is not considered an ongoing expense necessary to operate the Company’s business. Therefore, such expenses have been included in the below adjustments for calculating adjusted EBITDA, adjusted EBITDA margin, adjusted net income and adjusted net income per diluted common share. For the three months ended March 31, 2025, the Company also incurred $4.8 million of Giphy Retention Compensation expense related to recurring employee costs, which is included in operating expenses, and are not included in the below adjustments for calculating adjusted EBITDA, adjusted EBITDA margin, adjusted net income and adjusted net income per diluted common share.

These figures have not been calculated in accordance with GAAP and should be considered only in addition to results prepared in accordance with GAAP and should not be considered as a substitute for, or superior to, GAAP results. Shutterstock cautions investors that non-GAAP financial measures are not based on any standardized methodology prescribed by GAAP and are not necessarily comparable to similarly-titled measures presented by other companies.

Shutterstock’s management believes that adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted net income per diluted common share, revenue growth (including by product offering) on a constant currency basis (expressed as a percentage), billings and adjusted free cash flow are useful to investors because these measures enable investors to analyze Shutterstock’s operating results on the same basis as that used by management. Additionally, management believes that adjusted EBITDA, adjusted EBITDA margin, adjusted net income and adjusted net income per diluted common share provide useful information to investors about the performance of the Company’s overall business because such measures eliminate the effects of unusual or other infrequent charges that are not directly attributable to Shutterstock’s underlying operating performance; and revenue growth (including by product offering) on a constant currency basis (expressed as a percentage) provides useful information to investors by eliminating the effect of foreign currency fluctuations that are not directly attributable to Shutterstock’s operating performance. Management also believes that providing these non-GAAP financial measures enhances the comparability for investors in assessing Shutterstock’s financial reporting. Shutterstock’s management believes that adjusted free cash flow is useful for investors because it provides them with an important perspective on the cash available for strategic measures, after making necessary capital investments in internal-use software and website development costs to support the Company’s ongoing business operations and provides them with the same measures that management uses as the basis for making resource allocation decisions.

Shutterstock’s management also uses the non-GAAP financial measures adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted net income per diluted common share, revenue growth (including by product offering) on a constant currency basis (expressed as a percentage), billings and adjusted free cash flow, in conjunction with GAAP financial measures, as an integral part of managing the business and to, among other things: (i) monitor and evaluate the performance of Shutterstock’s business operations, financial performance and overall liquidity; (ii) facilitate management’s internal comparisons of the historical operating performance of its business operations; (iii) facilitate management’s external comparisons of the results of its overall business to the historical operating performance of other companies that may have different capital structures and debt levels; (iv) review and assess the operating performance of Shutterstock’s management team and, together with other operational objectives, as a measure in evaluating employee compensation; (v) analyze and evaluate financial and strategic planning decisions regarding future operating investments; and (vi) plan for and prepare future annual operating budgets and determine appropriate levels of operating investments.

Reconciliations of the differences between each of our non-GAAP financial measures (adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted net income per diluted common share, revenue growth (including by product offering) on a constant currency basis (expressed as a percentage), billings, adjusted free cash flow), and each measure’s most directly comparable financial measure calculated and presented in accordance with GAAP, are presented under the headings “Reconciliation of Non-GAAP Financial Information to GAAP” and “Supplemental Financial Data” immediately following the Consolidated Balance Sheets.

Previously Announced Merger Agreement with Getty Images Holdings, Inc. (“Getty Images”)

On January 7, 2025, Shutterstock announced that it entered into a merger agreement with Getty Images to combine in a merger of equals transaction, creating a premier visual content company. The transaction is subject to the satisfaction of customary closing conditions, including receipt of required regulatory approvals, the approval of Shutterstock stockholders and the extension or refinancing of Getty Images’ existing debt obligations.

As previously communicated, in light of pending transaction with Getty Images, Shutterstock will not be hosting a conference call or providing financial guidance in conjunction with its first quarter 2025 results.

For additional information associated with the transaction, please see the Company’s filings from time to time with the Securities and Exchange Commission.

ABOUT SHUTTERSTOCK

Shutterstock, Inc. (NYSE: SSTK) is a leading global creative platform offering high-quality creative content for transformative brands, digital media and marketing companies. Fueled by millions of creators around the world, a growing data engine and a dedication to product innovation, Shutterstock is the leading global platform for licensing from the most extensive and diverse collection of high-quality 3D models, videos, music, photographs, vectors and illustrations. From the world’s largest content marketplace, to breaking news and A-list entertainment editorial access, to all-in-one content editing platform and studio production services—all using the latest in innovative technology—Shutterstock offers the most comprehensive selection of resources to bring storytelling to life.

Learn more at www.shutterstock.com and follow us on LinkedIn, Instagram, X, Facebook and YouTube.

ADDITIONAL INFORMATION ABOUT THE ACQUISITION AND WHERE TO FIND IT

In connection with the proposed transaction, on March 31, 2025, Getty Images filed with the Securities and Exchange Commission (the “SEC”) a registration statement on Form S-4, as amended on April 28, 2025 , that includes an information statement of Getty Images and a proxy statement of Shutterstock and that also constitutes a prospectus with respect to shares of Getty Images’ common stock to be issued in the proposed transaction (the “information statement and proxy statement/prospectus”). The registration statement on Form S-4 was declared effective by the SEC on April 30, 2025. Shutterstock filed a definitive proxy statement and Getty Images filed a definitive information statement and prospectus with the SEC on April 30, 2025 and commenced mailing to their respective stockholders on April 30, 2025. Each of Getty Images and Shutterstock may also file with or furnish to the SEC other relevant documents regarding the proposed transaction. This filing is not a substitute for the information statement and proxy statement/prospectus or any other document that Getty Images or Shutterstock has filed or may file with or furnish to the SEC. BEFORE MAKING ANY VOTING OR INVESTMENT DECISION, INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE INFORMATION STATEMENT AND PROXY STATEMENT/PROSPECTUS AND ALL OTHER RELEVANT DOCUMENTS THAT ARE OR WILL BE FILED WITH, OR FURNISHED TO, THE SEC, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THESE DOCUMENTS, CAREFULLY AND IN THEIR ENTIRETY BECAUSE THEY CONTAIN OR WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION AND RELATED MATTERS. Investors and security holders are able to obtain free copies of the information statement and proxy statement/prospectus and other documents containing important information about Getty Images, Shutterstock and the proposed transaction filed with or furnished to the SEC through the website maintained by the SEC at www.sec.gov. Copies of the documents filed with, or furnished to, the SEC by Getty Images are available free of charge on Getty Images’ website at investors.gettyimages.com or by contacting Getty Images’ Investor Relations department by email at investorrelations@gettyimages.com. Copies of the documents filed with or furnished to the SEC by Shutterstock are available free of charge on Shutterstock’s website at investor.shutterstock.com or by contacting Shutterstock’s Investor Relations department by email at IR@Shutterstock.com.

PARTICIPANTS IN THE SOLICITATION

This communication is not a solicitation of proxies in connection with the proposed transaction. Getty Images, Shutterstock and certain of their respective directors and executive officers and other members of their respective management and employees may be deemed to be participants in the solicitation of proxies in respect of the proposed transaction. Information about the directors and executive officers of Getty Images, including a description of their direct or indirect interests, by security holdings or otherwise, is set forth in Getty Images’ Form 10-K for the year ended December 31, 2024 filed with the SEC on March 17, 2025 and in the information statement and proxy statement/prospectus filed with the SEC on April 30, 2025. Information about the directors and executive officers of Shutterstock, including a description of their direct or indirect interests, by security holdings or otherwise, is set forth in Shutterstock’s Form 10-K for the year ended December 31, 2024 filed with the SEC on February 25, 2025, as amended by Amendment No. 1 to such Form 10-K filed with the SEC on March 28, 2025. Other information regarding the participants in the proxy solicitations and a description of their direct and indirect interests, by security holdings or otherwise, is contained in the information statement and proxy statement/prospectus filed with the SEC on April 30, 2025 and other relevant materials to be filed with or furnished to the SEC regarding the proposed transaction. You may obtain free copies of these documents using the sources indicated above.

NO OFFER OR SOLICITATION

This communication is not intended to and shall not constitute an offer to buy or sell or the solicitation of an offer to buy or sell any securities, or a solicitation of any vote or approval, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offer of securities shall be made, except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.

FORWARD-LOOKING STATEMENTS

The statements in this press release, and any related oral statements, include forward-looking statements concerning Getty Images, Shutterstock, the proposed transaction described herein and other matters. All statements, other than historical facts, are forward-looking statements. Forward-looking statements may discuss goals, intentions and expectations as to future plans, trends, events, results of operations or financial condition, financings or otherwise, based on current beliefs and involve numerous risks and uncertainties that could cause actual results to differ materially from expectations. Forward-looking statements speak only as of the date they are made or as of the dates indicated in the statements and should not be relied upon as predictions of future events, as there can be no assurance that the events or circumstances reflected in these statements will be achieved or will occur or the timing thereof. Forward-looking statements can often, but not always, be identified by the use of forward-looking terminology including “believes,” “expects,” “may,” “will,” “should,” “could,” “might,” “seeks,” “intends,” “plans,” “pro forma,” “estimates,” “anticipates,” “designed,” or the negative of these words and phrases, other variations of these words and phrases or comparable terminology, but not all forward-looking statements include such identifying words. Forward-looking statements are based upon current plans, estimates and expectations that are subject to risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary. The forward-looking statements in this press release relate to, among other things, obtaining applicable regulatory and stockholder approvals for the proposed transaction on a timely basis or otherwise, satisfying other closing conditions to the proposed transaction, on a timely basis or otherwise, the expected tax treatment of the proposed transaction, the expected timing of the proposed transaction, and the integration of the businesses and the expected benefits, cost savings, accretion, synergies and growth to result therefrom. Important factors that could cause actual results to differ materially from the forward-looking statements include, among other things: failure to obtain applicable regulatory or stockholder approvals in a timely manner or otherwise; interloper risk; failure to satisfy other closing conditions to the transaction or to complete the transaction on anticipated terms and timing (or at all); negative effects of the announcement of the transaction on the ability of Shutterstock or Getty Images to retain and hire key personnel and maintain relationships with customers, suppliers and others who Shutterstock or Getty Images does business, or on Shutterstock or Getty Images’ operating results and business generally; risks that the businesses will not be integrated successfully or that the combined company will not realize expected benefits, cost savings, accretion, synergies and/or growth, as expected (or at all), or that such benefits may take longer to realize or may be more costly to achieve than expected; the risk that disruptions from the transaction will harm business plans and operations; risks relating to unanticipated costs of integration; significant transaction and/or integration costs, or difficulties in connection with the transaction and/or unknown or inestimable liabilities; restrictions during the pendency of the transaction that may impact the ability to pursue certain business opportunities or strategic transactions; potential litigation associated with the transaction; the potential impact of the announcement or consummation of the transaction on Getty Images’, Shutterstock’s or the combined company’s relationships with suppliers, customers, employers and regulators; demand for the combined company’s products; potential changes in the Getty Images stock price that could negatively impact the value of the consideration offered to the Shutterstock stockholders; the occurrence of any event that could give rise to the termination of the proposed transaction; and Getty Images’ ability to complete any refinancing of its debt or new debt financing on a timely basis, on favorable terms or at all. A more fulsome discussion of the risks related to the proposed transaction will be included in the information statement and proxy statement/prospectus. For a discussion of factors that could cause actual results to differ materially from those contemplated by forward-looking statements, see the section captioned “Risk Factors” in each of Getty Images’ and Shutterstock’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024, subsequent Quarterly Reports on Form 10-Q and other filings with the SEC. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated or anticipated by such forward looking statements. While the list of factors presented here is, and the list of factors presented in the joint proxy and information statement/prospectus will be, considered representative, no such list should be considered to be a complete statement of all potential risks and uncertainties. Unlisted factors may present significant additional obstacles to the realization of forward looking statements. Neither Getty Images nor Shutterstock assumes, and each hereby disclaims, any obligation to update forward-looking statements, except as may be required by law.

 

Shutterstock, Inc.

Consolidated Statements of Operations

(In thousands, except for per share data)

(unaudited)

 

Three Months Ended March 31,

2025

2024

Revenue

$           242,620

$           214,315

Operating expenses:

Cost of revenue

100,888

88,204

Sales and marketing

53,359

56,236

Product development

19,865

21,051

General and administrative

58,307

32,078

Total operating expenses

232,419

197,569

Income from operations

10,201

16,746

Interest expense

(4,298)

(562)

Other income, net

14,515

4,206

Income before income taxes

20,418

20,390

Provision for income taxes

1,730

4,269

Net income

$             18,688

$             16,121

Earnings per share:

Basic

$                 0.54

$                 0.45

Diluted

$                 0.53

$                 0.45

Weighted average common shares outstanding:

Basic

34,890

35,591

Diluted

35,322

36,066

 

Shutterstock, Inc.

Consolidated Balance Sheets

(In thousands, except par value amount)

(unaudited)

 

March 31, 2025

December 31, 2024

ASSETS

Current assets:

Cash and cash equivalents

$                112,231

$                111,251

Accounts receivable, net of allowance of $3,577 and $3,101

111,739

95,225

Prepaid expenses and other current assets

40,043

49,482

Total current assets

264,013

255,958

Property and equipment, net

65,624

66,400

Right-of-use assets

12,913

13,956

Intangible assets, net

238,278

248,477

Goodwill

572,420

569,668

Deferred tax assets, net

78,053

70,982

Other assets

92,917

83,715

Total assets

$             1,324,218

$             1,309,156

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:

Accounts payable

$                  16,119

$                    9,221

Accrued expenses

107,878

126,643

Contributor royalties payable

85,022

81,076

Deferred revenue

226,242

225,489

Debt

158,107

158,106

Other current liabilities

21,854

24,751

Total current liabilities

615,222

625,286

Deferred tax liability, net

1,853

2,174

Long-term debt

118,858

119,598

Lease liabilities

21,706

23,365

Other non-current liabilities

19,399

20,383

Total liabilities

777,038

790,806

Commitments and contingencies

Stockholders’ equity:

Common stock, $0.01 par value; 200,000 shares authorized; 40,422 and 40,395 shares
issued and 34,901 and 34,874 shares outstanding as of March 31, 2025 and December 31,
2024, respectively

403

403

Treasury stock, at cost; 5,521 shares as of March 31, 2025 and December 31, 2024

(269,804)

(269,804)

Additional paid-in capital

485,736

468,390

Accumulated other comprehensive loss

(12,544)

(16,841)

Retained earnings

343,389

336,202

Total stockholders’ equity

547,180

518,350

Total liabilities and stockholders’ equity

$             1,324,218

$             1,309,156

 

Shutterstock, Inc.

Consolidated Statements of Cash Flows

(In thousands, except par value amount) (unaudited)

 

Three Months Ended

March 31,

2025

2024

CASH FLOWS FROM OPERATING ACTIVITIES

Net income

$             18,688

$             16,121

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

22,671

21,263

Deferred taxes

(7,772)

(3,854)

Non-cash equity-based compensation

17,884

11,150

Bad debt expense

593

(1,510)

Unrealized gain on investments, net

(13,260)

(3,755)

Changes in operating assets and liabilities:

Accounts receivable

(16,618)

(736)

Prepaid expenses and other current and non-current assets

17,982

(11,999)

Accounts payable and other current and non-current liabilities

(17,264)

(20,182)

Contributor royalties payable

3,379

6,127

Deferred revenue

(1,036)

(4,325)

Net cash provided by operating activities

$             25,247

$               8,300

CASH FLOWS FROM INVESTING ACTIVITIES

Capital expenditures

(10,808)

(14,461)

Business combination, net of cash acquired

—

(19,474)

Cash received related to Giphy Retention Compensation

492

18,401

Acquisition of content

(897)

(994)

Security deposit payment

(21)

—

Net cash used in investing activities

$           (11,234)

$           (16,528)

CASH FLOWS FROM FINANCING ACTIVITIES

Cash paid related to settlement of employee taxes related to RSU vesting

(3,539)

(7,966)

Payment of cash dividends

(11,501)

(10,663)

Repayment of credit facility

(781)

—

Net cash used in financing activities

$           (15,821)

$           (18,629)

Effect of foreign exchange rate changes on cash

2,788

(1,822)

Net increase / (decrease) in cash and cash equivalents

980

(28,679)

Cash and cash equivalents, beginning of period

111,251

100,490

Cash and cash equivalents, end of period

$           112,231

$             71,811

Supplemental Disclosure of Cash Information:

Cash (received) / paid for income taxes

$                (604)

$               2,901

Cash paid for interest

4,359

509

 

Shutterstock, Inc.
Reconciliation of Non-GAAP Financial Information to GAAP
(In thousands, except per share information)
(unaudited)

Adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted net income per diluted share, revenue growth (including by distribution channel) on a constant currency basis (expressed as a percentage), billings and adjusted free cash flow are not financial measures prepared in accordance with United States generally accepted accounting principles (GAAP). Such non-GAAP financial measures should not be construed as alternatives to any other measures of performance determined in accordance with GAAP. Investors are cautioned that non-GAAP financial measures are not based on any standardized methodology prescribed by GAAP and are not necessarily comparable to similarly-titled measures presented by other companies.

Three Months Ended March 31,

2025

2024

Net income

$               18,688

$               16,121

Add / (less) Non-GAAP adjustments:

Non-cash equity-based compensation

17,884

11,150

Tax effect of non-cash equity-based compensation (1)

(4,203)

(2,620)

Acquisition-related amortization expense (2)

9,697

9,163

Tax effect of acquisition-related amortization expense (1)

(2,279)

(2,153)

Giphy Retention Compensation Expense – non-recurring

566

6,829

Tax effect of Giphy Retention Compensation Expense – non-recurring(1)

(133)

(1,605)

Merger related costs

11,861

—

Tax effect of Merger related costs(1)

(2,669)

—

Other(3)

(13,080)

(3,766)

Tax effect of other(1)

(41)

2

Adjusted net income

$               36,291

$               33,121

Net income per diluted common share

$                  0.53

$                  0.45

Adjusted net income per diluted common share

$                  1.03

$                  0.92

Weighted average diluted shares

35,322

36,066

(1)

Statutory tax rates are used to calculate the tax effect of the adjustments.

(2)

Of these amounts, $9.0 million and $8.2 million are included in cost of revenue for the three months ended March 31, 2025 and 2024, respectively. The remainder of acquisition-related amortization expense is included in general and administrative expense in the Statement of Operations.

(3)

Other consists of unrealized gains and losses on investments and severance costs associated with strategic workforce optimizations.

 

Three Months Ended March 31,

2025

2024

Net income

$            18,688

$            16,121

Add / (less) Non-GAAP adjustments:

Interest expense

4,298

562

Interest income

(935)

(1,043)

Provision for income taxes

1,730

4,269

Depreciation and amortization

22,671

21,263

EBITDA

$            46,452

$            41,172

Non-cash equity-based compensation

17,884

11,150

Giphy Retention Compensation Expense – non-recurring

566

6,829

Merger related costs

11,861

—

Foreign currency (gain) / loss

(320)

592

Unrealized gain on investment

(13,260)

(3,755)

Workforce optimization – severance

180

(11)

Adjusted EBITDA

$            63,363

$            55,977

Revenue

$          242,620

$          214,315

Net income margin

7.7 %

7.5 %

Adjusted EBITDA margin

26.1 %

26.1 %

 

Three Months Ended March 31,

2025

2024

Reported Revenue (in thousands)

$          242,620

$          214,315

Revenue growth

13 %

— %

Revenue growth on a constant currency basis

14 %

— %

Content reported revenue (in thousands)

$          202,888

$          173,830

Content revenue growth

17 %

(10) %

Content revenue growth on a constant currency basis

17 %

(10) %

Data, Distribution, and Services reported revenue (in thousands)

$            39,732

$            40,485

Data, Distribution, and Services revenue growth

(2) %

90 %

Data, Distribution, and Services revenue growth on a constant currency basis

(2) %

90 %

 

Three Months Ended March 31,

2025

2024

Cash flow information:

Net cash provided by operating activities

$               25,247

$                8,300

Net cash used in investing activities

$             (11,234)

$             (16,528)

Net cash used in financing activities

$             (15,821)

$             (18,629)

Adjusted free cash flow:

Net cash provided by operating activities

$               25,247

$                8,300

Capital expenditures

(10,808)

(14,461)

Content acquisitions

(897)

(994)

Cash received related to Giphy Retention Compensation

492

18,401

Merger related costs

9,350

—

Adjusted Free Cash Flow

$               23,384

$               11,246

 

Three Months Ended March 31,

2025

2024

Content

$             202,888

$             173,830

Data, Distribution, and Services

$               39,732

$               40,485

Total revenue

$             242,620

$             214,315

Change in total deferred revenue(1)

$                   753

$               (5,422)

Total billings

$             243,373

$             208,893

(1) Change in total deferred revenue excludes deferred revenue acquired through business combinations.

 

Shutterstock, Inc.

Supplemental Financial Data

(unaudited)

 Historical Operating Metrics

Three Months Ended

3/31/25

12/31/24

9/30/24

6/30/24

3/31/24

12/31/23

9/30/23

6/30/23

Subscribers (end of period, in thousands) (1)

1,079

459

470

490

499

523

551

556

Subscriber revenue (in millions) (2)

$   109.9

$    75.7

$    78.7

$    80.3

$    83.9

$    85.2

$    88.3

$    87.4

Average revenue per customer (last twelve months) (3)

$     244

$     450

$     446

$     434

$     418

$     412

$     401

$     374

Paid downloads (in millions) (4)

120.9

33.0

32.9

33.4

35.0

35.4

36.4

38.5

Subscribers, Subscriber Revenue and Average Revenue Per Customer from acquisitions are included in these metrics beginning twelve months after the closing of the respective business combination. Accordingly, the metrics include Subscribers, Subscriber revenue, and Average revenue per customer from Backgrid beginning February 2025. 2025 metrics include the counts and revenues from Envato.

 

(1)

Subscribers is defined as those customers who purchase one or more of our monthly recurring products for a continuous period of at least three months, measured as of the end of the reporting period.

(2)

Subscriber revenue is defined as the revenue generated from subscribers during the period.

(3)

Average revenue per customer is calculated by dividing total revenue for the last twelve-month period by customers. Customers is defined as total active, paying customers that contributed to total revenue over the last twelve-month period. 

(4)

Paid downloads is the number of downloads that our customers make in a given period of our content. Paid downloads exclude content related to our Studios business, downloads of content that are offered to customers for no charge, including our free trials and metadata delivered through our data deal offering.

 

Equity-Based Compensation by expense category

Three Months Ended

($ in thousands)

3/31/25

12/31/24

9/30/24

6/30/24

3/31/24

12/31/23

9/30/23

6/30/23

Cost of revenue

$     396

$     505

$     443

$     300

$     224

$     145

$     180

$     306

Sales and marketing

2,255

2,627

3,226

3,167

2,011

2,201

2,067

2,487

Product development

2,912

2,722

2,745

4,171

2,285

3,022

3,509

4,221

General and administrative

12,321

9,256

8,680

7,338

6,630

6,620

7,247

7,929

Total non-cash equity-based compensation

$ 17,884

$ 15,110

$ 15,094

$ 14,976

$ 11,150

$ 11,988

$ 13,003

$ 14,943

 

Depreciation and Amortization by expense category

Three Months Ended

($ in thousands)

3/31/25

12/31/24

9/30/24

6/30/24

3/31/24

12/31/23

9/30/23

6/30/23

Cost of revenue

$ 20,742

$ 21,191

$ 19,653

$ 20,087

$ 19,874

$ 18,952

$ 19,872

$ 18,134

General and administrative

1,929

2,096

1,991

1,346

1,389

1,404

1,400

1,070

Total depreciation and amortization

$ 22,671

$ 23,287

$ 21,644

$ 21,433

$ 21,263

$ 20,356

$ 21,272

$ 19,204

 

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SOURCE Shutterstock, Inc.

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HiBy Launches RS2 II Portable Hi-Fi Player with Flagship DARWIN III Architecture

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LEWES, Del., Oct. 19, 2026 /CNW/ — HiBy has officially launched the RS2 II, a compact portable Hi-Fi player featuring the company’s third-generation DARWIN III audio architecture, the same architecture used in the flagship RS8 II. Designed for audiophiles seeking flagship-level sound in a smaller and more portable form, the RS2 II combines HiBy’s proprietary R2R technology, a fully balanced analog stage, HiByOS, and flexible connectivity.

At the heart of the RS2 II is the DARWIN III architecture, powered by a newly developed FPGA digital engine featuring more than 35K logic units and 40 high-speed, high-performance DSP units. This processing platform provides the computing power required for HiBy’s adjustable pure FIR filters, multiple DARWIN filters, harmonic control, NOS/OS switching, and native DSD processing.

Digital-to-analog conversion is handled by a high-precision R2R resistor network. High-speed electronic switches drive the resistor network to convert digital signals into corresponding analog voltage levels, helping reduce high-frequency noise introduced by digital modulation while delivering a natural, transparent, and musical presentation.

The analog stage uses a four-stage OPA1612 signal chain. One OPA1612 performs low-pass filtering after the DAC stage, another provides current amplification after volume control, while two additional OPA1612 devices form a fully balanced voltage amplification stage. At the headphone output, four flagship-grade OPA1622 amplifiers provide independent four-channel current amplification for improved dynamics, control, and compatibility with multi-driver earphones.

The RS2 II is also more compact than its predecessor. The standard aluminum alloy edition weighs just 156g and features a dark green finish with a houndstooth-pattern rear panel. Compared with the original RS2, the display area has increased by 45% and resolution by 122%. The new 3.55-inch 480 × 800 display, together with narrower bezels, provides a significantly improved visual experience. An upgraded X1600E dual-core platform further enhances system responsiveness.

Running HiBy’s dedicated HiByOS, the RS2 II supports coaxial output, Line Out, and USB DAC functionality. Dual microSD card slots support up to 4TB of total expandable storage.

The HiBy RS2 II Aluminum Alloy Edition is priced at US$439 and is available as a standard production model. The Limited Brass Edition is priced at US$549 and is expected to become available in October, with worldwide production restricted to just 500 units.

Contact
William Yueng
bd@hiby.com

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SOURCE HiBy

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Beyond a Single Payment Rail: Building Resilience into Cross-Border B2B Trade

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At the 140th Canton Fair, PhotonPay examines how fiat and stablecoin infrastructure can give advanced manufacturers more flexibility in managing cross-border payments and working capital.

HONG KONG, Oct. 19, 2026 /PRNewswire/ — A piece of industrial machinery may take months to engineer, manufacture and deliver. The payments behind it follow a different timeline. Suppliers need to be paid, freight costs must be covered, and overseas buyers may settle invoices in stages. When production, delivery and payment span multiple markets, keeping these commitments aligned becomes a challenge of its own.

At the 140th Canton Fair, where manufacturers are showcasing industrial machinery, electronic components, automotive parts and other advanced manufacturing products, this less visible side of global trade deserves closer attention. PhotonPay is participating in the fair at Area D, Booths DT1714–DT1718, examining how more flexible financial infrastructure can help businesses manage cross-border payments alongside the demands of international trade.

The Payment Gap Behind Global Supply Chains

Supply chain resilience is often discussed in terms of sourcing, manufacturing capacity and logistics. The flow of money deserves the same attention.

A manufacturer may have sufficient orders and production capacity but still face pressure when incoming payments and outgoing obligations fall out of sync. A payment initiated by a buyer does not necessarily mean the funds are immediately available to the seller. The transfer may involve multiple financial institutions, currency conversion, local processing and compliance checks before the recipient can use the money.

Costs can also be difficult to assess across different payment corridors. Depending on the banks and arrangements involved, intermediary fees, foreign exchange charges and other transaction costs may affect the final amount received. Limited visibility into a payment’s status can make it harder for finance teams to plan supplier payments and reconcile invoices.

The answer is not to abandon established banking infrastructure. Bank transfers still remain important to international trade. Nor is every payment delayed or expensive simply because it crosses a border. The more useful question is whether businesses have the right payment options for different markets, currencies and settlement requirements, rather than relying on one approach for every transaction.

Why Fiat and Stablecoin Rails Need to Work Together

Discussions about cross-border payments increasingly include stablecoins, but the choice facing corporate finance teams is not simply traditional banking versus blockchain.

Banking infrastructure remains essential. It connects businesses to local accounts, domestic payment systems and established financial relationships. Stablecoin networks offer a different set of capabilities: transfers can take place outside conventional banking hours, subject to the network and service arrangements involved.

Each serves different needs. A stablecoin transfer alone may not put spendable local currency in a supplier’s hands. The recipient’s ability to accept the asset, conversion and liquidity arrangements, access to local payout channels and applicable regulatory requirements all matter. A business also needs to know how a transaction will be screened, recorded and reconciled with its underlying commercial documents.

This is where a dual-rail model becomes relevant. By connecting traditional fiat infrastructure with stablecoin payment channels, a business can access different ways to move funds within a unified financial environment, where supported and permitted.

The choice of payment route should reflect the corridor, currency, counterparty, timing requirements and compliance obligations. For advanced manufacturers, this flexibility can help finance teams coordinate incoming payments with supplier invoices, logistics costs and other business obligations. Foreign exchange exposure, liquidity constraints and compliance reviews still require careful management, while access to different payment rails gives businesses more options to work with.

From Payment Choice to Operational Control

More payment options are useful only when they fit into the way a business operates.

For an exporter, receiving funds is one step in a longer process. The money may need to be converted into another currency, held until a supplier payment is due, or distributed to different counterparties across markets. Managing these steps through disconnected accounts and systems can add work for finance teams and make it harder to maintain a consistent view of cash positions.

PhotonPay, a stablecoin-powered payment operating system, brings together global accounts, local collection capabilities, multi-currency fund management, currency conversion and global payouts across fiat and stablecoin infrastructure.

Through PhotonPay’s global accounts, businesses can collect payments from overseas customers through local accounts and international transfers. Its multi-asset wallet connects fiat currencies with stablecoins, while its 24/7 currency conversion capabilities give businesses greater flexibility in managing different currency needs. Global payout capabilities help businesses move funds onward to suppliers and other counterparties across markets.

Together, these capabilities connect the key stages of cross-border fund management, from receiving customer payments and converting currencies to making subsequent business payments. Finance teams can manage incoming funds and outgoing obligations within a more integrated financial environment, with greater visibility across their global operations.

For B2B trade, operational visibility is as important as the ability to initiate a transfer. Finance teams need to understand the amount received, the costs associated with a transaction, its processing status and how the resulting movement of funds relates to an invoice or supplier payment.

By bringing payment infrastructure and fund management into a more connected workflow, PhotonPay helps businesses manage the movement of money alongside the commercial activity it supports.

Making Money Move at the Pace of Business

Global trade depends on two flows moving in sync: goods moving through supply chains and money moving between counterparties. For manufacturers operating across markets, the ability to collect, convert and deploy funds efficiently can shape how they manage supplier commitments, working capital and the next stage of production.

At the 140th Canton Fair, PhotonPay is showcasing how integrated fiat and stablecoin capabilities can help businesses keep capital moving alongside their operations. Visit PhotonPay at Area D, Booths DT1714–DT1718, during the Canton Fair.

About PhotonPay

PhotonPay is a stablecoin-powered payment operating system built for global infrastructure. Designed for modern enterprises, PhotonPay enables businesses to send, receive, convert, and settle funds across both fiat and stablecoin rails through a single, compliance-first integration, spanning 200+ countries and territories.

For more information, visit [www.photonpay.com].

Disclaimer

This material is for general informational purposes only and does not constitute legal, regulatory, tax, accounting, or investment advice, nor an offer or solicitation for any product or service. The availability, features, and regulatory treatment of PhotonPay’s products and services may vary depending on the user’s location, business model, and the laws and regulations that apply. Any descriptions of functionality, performance, efficiency, cost savings, or compliance support (including, without limitation, references to “real‑time”, “24/7”, “high‑efficiency”, or “compliant” solutions) are aspirational or forward‑looking in nature. Actual outcomes may differ due to market conditions, technological constraints, and regulatory developments, and PhotonPay makes no express or implied representation, warranty, or guarantee as to the achievement of any particular result.

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SOURCE PhotonPay

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Following the Money: Stablecoin Transfers Under $100 Account for 77% of Activity, While Large Transactions Move Two-Thirds of Value, Mercuryo and BNB Chain Report Finds

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LONDON, Oct. 19, 2026 /PRNewswire/ — Global payments infrastructure platform Mercuryo and BNB Chain, the community-driven blockchain ecosystem, have published a joint report highlighting the versatility of stablecoins, which facilitate activity ranging from low-value remittances to transactions made by ‘crypto whales’ moving digital assets across capital markets.  

The research found that 77.4% of stablecoin transfers on BNB Chain in Q3 2026 were valued at under $100, while transfers of $10,000 or more accounted for 66.2% of total transfer value.  

Combining Mercuryo’s fiat-to-crypto and crypto-to-fiat transaction data with BNB Chain’s on-chain data for Q3 2026, Stablecoins on BNB Chain: Fiat to Crypto and Back offers a complementary view of how stablecoins move. The findings show the versatility and usability of stablecoins and how they can serve very different purposes on the same permissionless blockchain infrastructure. 

Everyday Transfers & Large-Scale Capital Movements 

The findings point to a market serving multiple purposes simultaneously. While stablecoins remain an important component of digital asset markets, the data also highlights patterns consistent with their growing role in everyday stablecoin payments such as cross-border remittances. Most on-chain transfers are low-value, and stablecoins are frequently being converted between local currencies and digital dollars. 

The median network fee for a stablecoin transfer on BNB Chain was just *$0.0068:Low costs matter both to people sending remittances and to institutions settling high-value payments.Together, these figures demonstrate how the same blockchain infrastructure can accommodate frequent, low-value transfers alongside large-scale movements of capital.

“The research by Mercuryo and BNB Chain sheds light on one of the defining features of stablecoins, that being their versatility,” said Arthur Firstov, Chief Business Officer at Mercuryo. “The same permissionless blockchain infrastructure that facilitates small-value transfers and cross-border payments is underpinning large-scale trading and liquidity across capital markets. Stablecoins were designed as a place to hold value between trades for those taking positions on Bitcoin. We now see the tokens being used for a host of different purposes as the efficiencies and lower costs of blockchain technology bring benefits to the masses.” 

Local Currencies & Familiar Payment Methods  

The report found that in Q3 2026, 70% of the value used to purchase dollar-denominated stablecoins on BNB Chain through Mercuryo was paid in non-US dollar currencies. The US accounted for just 9.8% of purchase value, with Asia the largest regional market at 39.3%, followed by Europe at 33.4%. 

Payment preferences also resemble mainstream online shopping behaviour. Everyday shopping patterns are mirrored on-chain, with Apple Pay and Google Pay accounting for 69.5% of stablecoin purchases and 57.7% of purchase value through Mercuryo. Their combined share of purchases increased from 42.3% in Q3 2025, while 87.2% of purchases with a recorded device were made on a phone.

Worldpay’s Global Payments Report 2026 found that digital wallets collectively accounted for 56% of global e-commerce value in 2025. The comparison suggests that stablecoin purchases are increasingly compatible with the familiar checkout experiences consumers already use online, rather than requiring every user to adopt specialist crypto payment methods. 

Self-Custody Leads

Self-custody leads at every stage of a stablecoin’s usage examined in the report. Through Mercuryo, 59.5% of stablecoin purchase value went to self-custody wallet channels. Across BNB Chain, individual addresses held 63.3% of stablecoin value, while 59.8% of off-ramp value processed through Mercuryo originated from self-custody wallet channels. 

Although the datasets use different measures of wallet activity, the findings point to the continued importance of self-custody wallets in accessing and managing stablecoins. These wallets allow users to hold and transfer assets directly, while providing access to applications and services across the on-chain ecosystem. 

Stablecoins in Active Circulation 

The report also found that 64.3% of stablecoin value on BNB Chain had moved within the previous 30 days, suggesting that much of the value was actively circulating. The findings highlight stablecoins’ dual role, facilitating the movement of value while continuing to support trading, decentralised finance (DeFi) and broader on-chain activity. 

Taken together, the findings of this report show stablecoins as more than digital tokens held on a blockchain. They form part of a broader financial lifecycle connecting fiat currencies, self-custody wallets, on-chain applications, and traditional payment infrastructure, serving a wider range of financial needs than trading alone. 

* Stablecoin transfers on BNB Chain are $0.0068. Additional fees for the purchase, sale or conversion into stablecoins may apply. 

Stablecoins carry risks, including potential loss of value, issuer and redemption risks, and risks associated with the underlying blockchain. They are not equivalent to bank deposits or cash, and are not be covered by deposit protection schemes. 

About Mercuryo 

Mercuryo is a leading payment infrastructure platform in the digital token space. Standing out in the decentralized ecosystem by enhancing payment use case growth and on-chain integration, Mercuryo’s intuitive and robust solutions are powering the next generation of Web3 payment services. Mercuryo’s innovative payment products such as Spend, bridge the gap between TradFi, Web2 and Web3. Mercuryo is the proud partner of leading pillars in the digital token economy such as Trust Wallet and MetaMask, along with Revolut, Mastercard and Visa. Driven by an evolving product suite, Mercuryo is expanding further and continuing to innovate with a diversified stack of payment services. 

Media Contact    
Joe Morgan, PR Manager, Mercuryo    
j.morgan@mercuryo.io  

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